Term Life and Whole Life Insurance: What's the Difference?

One important insurance product every head of household should carry is life insurance. Life insurance kicks in when a policyholder passes away. It is used to cover funeral costs and provide a financial safety net for dependents. Two of the main types of life insurance are term life and whole life, each offering benefits for different circumstances.

Term Life Insurance

Term life insurance provides a payout if the policyholder passes away during a specific timeframe, which could be 10, 20, or 30 years for most policies. Term life is the cheapest type of life insurance since it only pays if the policyholder dies prematurely. Term life insurance is best utilized during a family’s main billpaying years, such as when they’re paying mortgages and raising children. The amount should be enough to replace the policyholder’s income and provide the family with the same standard of living. Ideally, children will be grown, investments will be paid off, and retirement savings will be adequate by the time the policy expires.

Whole Life Insurance

Whole life insurance is permanent and guarantees a benefit. The policy's cash value slowly grows at a guaranteed, tax-deferred rate, leaving the policyholder with the option to borrow against it or cash it in early. Whole life insurance is more expensive than term life because the payout is guaranteed, but the premium never changes. Just as with home and auto insurance, whole life insurance can be customized to meet a buyer’s specific coverage needs.

Invest in Life Insurance Today

If you own any assets or have any financial dependents, you can’t afford to not invest in life insurance. A solid policy from a trusted insurance company offers peace of mind that your investments will be protected and your loved ones will be cared for should something happen to you. Connell & Curley Insurance Agency Inc. offers term and whole life insurance policies, and we can customize a plan that works for your family. Call our insurance agents today at (508) 655-1112 to learn more.

Four Types of Insurance Businesses Need

Business owners need to purchase insurance policies that protect their companies' assets as well as their personal livelihoods. Even when risk is not immediately apparent, running a business carries a certain chance of financial loss. These are the four most common types of insurance that businesses use to mitigate these potential losses.

Professional Liability 

Businesses can be sued for negligence if a client perceives that errors or performance failures led to financial damages. Depending on the specific products or services provided, a professional liability policy can incorporate various protections against these instances and can be customized for the needs of the business. It usually pays for damages, medical fees, and legal costs.

Workers' Compensation Insurance

Businesses that have employees must purchase a workers' compensation policy. This type of insurance covers death and disability benefits, medical bills, lost wages, and other related costs that result when a worker is injured on the job. Even companies that aren't involved in physical labor should keep in mind that employees can sue for a slip and fall accident or an office-related condition like carpal tunnel syndrome.

Property Insurance

This type of policy is a must for businesses that own or lease a workspace, warehouse, office, or commercial property. Property insurance protects the items stored in the business location from theft, fire, and natural disasters. This policy will cover the cost of replacing furniture, inventory, computers, devices, and supplies.

Business owners who work from home must purchase additional insurance to cover work-related equipment, inventory, furniture, and other items. If they are used for business purposes, these items are not covered under a homeowner's policy.

Vehicle Insurance

When motor vehicles are used in the course of business, they must be properly insured. Businesses should purchase both comprehensive and collision coverage for work vehicles. Employees who occasionally use their own vehicles for work purposes (except for deliveries) are covered by their personal auto insurance policies.

Connell & Curley Insurance Agency Inc. has been serving clients in the Natick area for more than 50 years. Contact us online today or call (508) 655-1112 to learn more about how we can assist with business insurance needs.

How to Talk to Your Teen About Safe Driving

For many teens, hitting 16 is synonymous with becoming a driver. Although this is an exciting time for teens seeking freedom and more responsibility, it can also be dangerous if they are not correctly prepared. Unfortunately, the Centers for Disease Control and Prevention reports that driving is the main cause of death for teens in the U.S., so take the time to discuss these safe driving tips with your teen.

Take Them Driving 

It may be difficult to remember all the nuances of safe driving from the kitchen table. That's why the best time to give safe driving tips is in the car itself. Once they have their learner's permit, take your teen on a slow drive with you driving one way and them driving back. This way, you can demonstrate safe driving techniques and then let them practice. This also allows teens to learn how to drive in a safe environment.

Underline the Dangers of Driving

Teens may see driving as a path to freedom, seeing their friends, and having fun. While driving may be the route to all of these things, remind your teen that driving itself should not be purely fun. Explain to them that operating a two-ton piece of heavy machinery should take all of their attention and that there are serious consequences associated with taking their eyes off the road for even a second. According to the National Highway Traffic Safety Administration (NHTSA), distracted driving killed 3,450 people in 2016 alone. Highlight other statistics about unsafe driving from the NHTSA to convey real and possible consequences.

Set a Good Example

From wearing your seatbelt to putting your phone away while driving, it's crucial to demonstrate proper driving tips to teens no matter what. Even younger teens who are years away from getting their licenses will assume that however their parents behave behind the wheel is acceptable, meaning that if you text and drive, they may do it one day, too.

Explain That Driving Is a Privilege

Many teens may see driving as a rite of passage, especially when their friends begin to drive. However, remind them that driving is a privilege that can be revoked at any time. Set clear ground rules, such as no speeding and always wearing a seatbelt. If these rules are broken, suspend their driving privileges to send the message that safe driving behavior is mandatory.

Talking to teens about safe driving is tricky but necessary. Remember that teens are bound to make mistakes, and the right auto insurance can make all the difference. Although Massachusetts may be one of the most expensive states for car insurance, Connell & Curley Insurance Agency Inc. can help you find possible discounts that encourage responsible teen drivers, such as maintaining a safe driving record and good grades. Contact us at (508) 655-1112 to learn more.